My best fix for entries requires overrides on various worksheets. sch m-1 item ws. permanent income items (tax exempt) - manual entry "ppp loan forgiveness and enter amount "per books" next sch m-1 ws. expense items "other expense related to tax exempt income enter ppp loan expenses on "per books" column (I entered as a supporting ws for description) (transfers as negative amount in difference column. this will -0- out oaa on m1. next, sch m1 ws, expense items, "other permanent expense items" enter "ppp qualified expenses" and enter in book column - then override difference column to -0-. m2 ws needs an override 'schedule k additions" enter "ppp loan proceeds" and amount in aaa column. next, schedule M-1 (NOT WORKSHEET) enter line 3 (b) "ppp qualified expenses" and enter amount as a negative number. (this will -0- out schedule M-1 3(b). next need to override schedule K, line 16(c) to -0- (deletes reporting of expenses associated with tax exempt income). finally, need to override shareholder basis statement, line 3 to the amounts reported on M-2 lines 2 and line 3. this is a lot of work. but in my case , schedule k and k-1 correct, sch M-1 correct and M-2 correct (m1 and m2 reporting according to IRS instructions) and Basis correct. Intuit has really dropped the ball on this one. they also dropped the ball on 1040 form 7203 s corp shareholder basis.
